Exemption - Form & Contents of Accounts

Last updated: 11 March 2007

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In certain situations, a company can seek exemption from the requirements of Sec. 211 of the Companies Act, 1956 relating to the Form & Content of Balance Sheet and Profit & Loss Account.

Application to Central Government -

Sec. 211(4) provides that,"The Central Government may, on the application, or with the consent of the Board of directors of the company, by order, modify in relation to that company any of the requirements of this Act as to the matters to be stated in the company's balance sheet or profit and loss account for the purpose of adapting them to the circumstances of the company."

How to Apply -

The Ministry of Company Affairs website provides the following with regard to application for exemption under Sec. 211 -

Contents of Application -

Application in e-Form 23AAA seeking exemption under Section 211(4) of the Companies Act should be accompanied by :

(i) Specific Board resolution in support of the proposal indicating specific paras of Part II of Schedule VI and the financial year in respect of which exemption is sought.

(ii) Copies of approvals under Section 211 obtained, if any, during the last three financial years.

Particulars of Application -

The following information should invariably be furnished with the application in the fields forming part of the e-Form:

(i) The financial year for which exemption is sought.

(ii) Precise reasons/justification for seeking exemption.

(iii) If the company had been complying with the requirements in the past, reasons as to how the company has been complying in the past.

(iv) It should be indicated as to whether the company is maintaining proper purchase/ sales/ stock registers so as to furnish true and fair view of its state of affairs in compliance of Sections 209/211 read with Schedule VI to the Act.

(v) Details of total turnover and exports made by the company during the financial year in respect of which exemption is sought.
The companies may have to furnish any other additional information as may be asked for by the Department.

.....CA Ramanujam S (ramanujam_ca@yahoo.co.in)

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